Oil Trades Below $77 on Renewed Concern Europe Crisis to Spread

June 25 (Bloomberg) -- Crude oil traded below $77 a barrel in New York, poised for the first weekly decline in three, on renewed concern the European debt crisis may slow the global economic recovery.

Oil rose 0.2 percent yesterday as U.S. durable goods orders meant to last three years climbed in May and after applications for jobless benefits fell from a two-month high last week. Stocks fell on concern the European debt crisis will hinder global growth. The Standard & Poor’s 500 Index dropped for a fourth day, the longest losing streak in seven weeks.

“The macro mood is still cautious,” said Toby Hassall, a commodity analyst at CWA Global Markets Pty in Sydney. “The durable goods numbers offered some positives for the demand outlook for oil. I doubt whether crude can rally without general market sentiment improving.”

Crude oil for August delivery was at $76.43 a barrel, down 8 cents, in electronic trading on the New York Mercantile Exchange at 8:22 a.m. Singapore time. Yesterday, the contract gained 16 cents to settle at $76.51. Futures are poised for a 1 percent drop this week, and are down 3.7 percent this year.

Order for goods, excluding autos and aircraft, gained 0.9 percent in the U.S. last month, the third increase in four months, according to the Commerce Department. The number of Americans applying for jobless benefits declined by 19,000 last week to 457,000, the Labor Department said.

The S&P 500 fell 1.7 percent to 1,073.69, and the Dow Jones Industrial Average lost 1.4 percent to 10,152.80 as the rising cost to protect Greece from default spurred concern that the pace of the European recovery will slow.

Brent crude oil for August delivery was at $76.41 a barrel, down 6 cents, on the ICE Futures Europe exchange in London at 8:08 a.m. Singapore time. Prices climbed 0.3 percent to close at $76.47 yesterday.